Preparation of T-accounts, income statement, and balance sheet. Refer to the information for Zealock Bookstore in problem 29. The following transactions relate to Year 11.

(1) March 15: Pays income taxes for Year 10.

(2) June 30: Repays the bank loan with interest.

(3) July 1: Obtains a new bank loan for \(\$ 75,000\). The loan is repayable on June 30, Year 12 with interest due at maturity of 8 percent.

(4) July 1: Receives the security deposit back from the book distributors.

(5) July 1: Pays the rent due for the period July 1, Year 11 to June 30, Year 12.

(6) During Year 11: Purchases books on account costing \(\$ 310,000\).

(7) During Year 11: Sells books costing \(\$ 286,400\) for \(\$ 353,700\). Of the total sales, \(\$ 24,900\) is for cash, \(\$ 850\) is from special orders received during December Year 10 , and \(\$ 327,950\) is on account.

(8) During Year 11: Returns unsold books costing \(\$ 22,700\). The firm had not yet paid for these books.

(9) During Year 11: Collects \(\$ 320,600\) from sales on account.

(10) During Year 11: Pays employees compensation of \(\$ 29,400\).

(11) During Year 11: Pays book distributors \(\$ 281,100\) for purchases of books on account.

(12) December 31, Year 11: Declares and pays a dividend of \(\$ 4,000\).

a. Open T-accounts for each of the accounts on the December 31, Year 10 balance sheet.

b. Record the transactions during Year 11 in T-accounts.

c. Record all required adjusting entries on December 31, Year 11 in the T-accounts.

d. Prepare a comparative income statement for Year 10 and Year 11.

e. Prepare a comparative balance sheet for December 31, Year 10 and December 31, Year 11.

f. Evaluate the operating performance and financial health of Zealock Bookstore.